In which economic ideology do Klein's models embody?
Classical economics
Neoclassical economics
Marxist economics
Keynesian economics
Answer
Keynesian economics is a theory that emphasizes the importance of aggregate demand in determining the level of economic activity. In particular, it emphasizes the role of government spending and investment in stimulating aggregate demand and thus promoting economic growth. Klein's models are based on the Keynesian theory and are used to analyze the effects of government policy on the economy.
Mastering Macro: The Legacy of Lawrence Klein
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